Educating the Members

In running an angel group, it’s important to educate the new members on how to invest in startups.

Most new members will not have experience with startup funding.

It’s important to set up an education program for the members.

The members will receive education through the process of screening the deals, negotiating the terms, and diligencing the startups.

In addition, there should be formal training on key issues such as how to assess potential investment opportunities.

The training should cover the basics of angel investing as well as the following topics:

1. Term sheets including key terms, deal structures, and concepts.
2. Valuations, including how to figure valuation and negotiate with startups.
3. Due diligence topics such as financial analysis, market review, and team assessment.
4. Capitalization tables and how to read them.
5. Portfolio strategy and how to build a portfolio of startup investments.
6. Investment returns in startups and how to calculate them.
7. Board work and how to support the startup as a board member.

While there is a great deal of information on the web, there should be an organized approach to covering these topics and allowing members to ask questions.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.